GBR – LatAm Chemicals, 2023

The petrochemical industry has experienced a significant downturn, with the COVID-19 pandemic exacerbating existing problems. The construction of petrochemical plants has been delayed, and consumption patterns have been disrupted as economies open and close. This has led to oversupply in the market, impacting Latin America as a net importer of chemicals. Latin American producers face challenges due to a shortage of feedstocks and higher costs compared to their Asian and American counterparts. However, they can leverage their strengths, such as scale and location, to navigate this difficult period. Despite the challenges, there is optimism in the industry. Petrochemical players interviewed for this report see potential in green products with renewable sources like wind, solar, and biomass. The growth of green chemistries is seen as an opportunity, alongside the continued demand for traditional chemicals in the context of the energy transition. In Latin America, the growth of bio-based, recycled, and green-powered products aligns with the growth in oil and gas production. Both traditional and green chemicals are seen as necessary for the industry's future. Overall, the petrochemical industry in Latin America faces immediate challenges but also sees opportunities for growth and transition towards greener alternatives.